If the court finds that the grounds set forth below exist with respect to a liquidating stock company, it orders relevant liquidating stock company to commence special liquidation in response to the filing under the provisions of Article 514:
the existence of circumstances prejudicial to the implementation of the liquidation; or
清算の遂行に著しい支障を来すべき事情があること。
the suspicion that the liquidating stock company is insolvent (meaning the status where the assets of the liquidating stock company is not sufficient to fully discharge its debts; the same applies in paragraph (2) of the following Article).
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liquidating stock companies
「清算株式会社」
A stock company that is being wound up, which is treated as still existing for the purposes of the liquidation until the liquidation is completed.
Short name set inArticle 476, paragraph (1)
insolvencymachine translation
「債務超過」
In Article 510, item (ii) and Article 511, paragraph (2), the state in which the assets of a liquidating stock company (清算株式会社) are not enough to pay off all its debts.
Defined inArticle 510, paragraph (1), item (ii)· applies only in this provision and in Article 511, paragraph (2)